Strong start to the new year! With surging AI demand and tightening supply, storage chips see a collective rebound.

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Driven by the continued expansion of artificial intelligence infrastructure construction, strong demand and supply bottlenecks have jointly pushed up storage chip prices. This not only led to a strong rebound in the global semiconductor sector at the beginning of the new year, but also sparked strong market expectations for a structural growth cycle in the industry.

After a significant increase in 2025, supply shortages of storage chips—key components for AI model training and operation—have not eased. According to data from Counterpoint Research, the price of dynamic random-access memory (DRAM) is expected to rise another 40% by the second quarter of 2026. This trend has directly boosted the stock prices of industry giants: South Korea's SK Hynix and Samsung have risen 11.5% and 15.9% respectively so far this year, and Micron Technology's stock has also climbed 9%.

This rebound is not limited to storage chip manufacturers—the gains have spread to the broader semiconductor supply chain. The market generally expects that, as tech giants continue to spend billions of dollars on chip procurement and building AI data centers, supply-demand imbalances for key components such as high bandwidth memory (HBM) will grant relevant enterprises stronger pricing power. Investor sentiment is optimistic, with expectations that in the upcoming earnings season, major chipmakers will deliver reports showing soaring profits.

In addition, this positive momentum has also boosted the foundry and equipment manufacturing sectors. Intel, TSMC, and lithography giant ASML have all recorded significant share price increases at the start of the new year. Analysts point out this is not just a short-term market rebound, but a structural transformation linked to the long-term construction of AI infrastructure, indicating that the storage industry, exemplified by DRAM, may be ushering in a super cycle.

Performance Explosion Expectations Driven by AI

Ben Barringer, head of technology research at Quilter Cheviot, pointed out in an interview with CNBC that the recent rebound in semiconductors has been driven mainly by the storage sector, not logic chips. He emphasized this results from the strong demand generated by AI workloads and the relatively limited supply of high bandwidth memory (HBM), which is essential for training and operating large AI models.

This supply-demand pattern is seen as a major positive for Samsung, SK Hynix, and Micron Technology. Given no signs of demand slowing, these three giants are expected to further raise the selling price of their storage chips. The market has high hopes for their upcoming Q4 earnings. According to LSEG estimates, Samsung's Q4 operating profit is expected to soar by 140%. Meanwhile, analysts forecast Micron Technology's year-on-year earnings per share for the quarter ending December to surge by more than 400%.

Rebound Effects Spreading to the Entire Industry Chain

The strong performance of storage chip stocks has had a spillover effect, benefiting the entire semiconductor supply chain. Investors are betting that robust AI demand expected in 2025 will continue this year, boosting the stock prices of other key sector players. TSMC, the world's largest semiconductor manufacturer, has seen its stock rise nearly 10% so far this year, while Intel's shares have climbed nearly 7%. Both companies are viewed as beneficiaries of continued AI prosperity.

Netherlands-based lithography machine giant ASML has performed particularly well, with shares up nearly 14% this year. ASML designs and manufactures the key machines required to produce the world's most advanced chips. In a Sunday report, Bernstein raised ASML's target price from 800 euros to 1,300 euros, implying about 24% upside from Tuesday's trading price.

Structural Transformation and the "Super Cycle"

Bernstein analysts noted that ASML will greatly benefit from the large-scale capacity expansion planned for 2026 and 2027, especially the coming "DRAM super cycle." Analysts expect storage chip makers like Samsung to increase capacity, which will directly benefit ASML, since producing more advanced storage chips depends on its equipment.

Ben Barringer of Quilter Cheviot added that SK Hynix's recent comments about a potential HBM super cycle further reinforce the market view: this is not just a short-term rebound, but a structural transformation closely tied to ongoing construction of AI infrastructure. This trend has significantly improved sentiment across the industry, especially for companies that directly benefit from AI-driven storage demand.

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